Hospital Industry Changes To Take Hold Across Calif., Experts Say

The hospital industry in the San Francisco Bay Area is undergoing a "shakeup" as small and independent facilities undergo sales, potential closures and other changes -- a trend that experts say could spread throughout the state as the federal government works to reduce health care costs, the San Francisco Chronicle reports (Colliver, San Francisco Chronicle, 3/13).

Background

Last week, Prime Healthcare withdrew its offer in the contentious sale of six California safety-net hospitals run by Daughters of Charity Health System -- including facilities in Daly City, Gilroy, Moss Beach and San Jose. Some stakeholders have said that the hospitals likely will close if a sale does not go through (Gorn, "Capitol Desk," California Healthline, 3/11).

Doctors Medical Center in San Pablo also faces closure if a sustainable source of revenue cannot be found soon (California Healthline, 2/20).

Meanwhile, other hospitals in the area are being "scooped up" by larger health systems, according to the Chronicle. For instance, Children's Hospital Oakland became affiliated with UC-San Francisco's academic medical center and Alameda Health System brought individual hospitals in Alameda and San Leandro into the county's safety-net health care system.